Welspun Retail, a subsidiary of India’s home furnishing major Welspun India, has announced its decision to hike the prices of its products by five per cent to counter the increase of cotton and crude prices in the domestic market.
As per the new prices, which will be operational from September 2008 onwards, a bed sheet will cost somewhere between Rs 209 and Rs 734 from its existing price tag of Rs 199 and Rs 699.
According to Dipali Goenka, director, Welspun Retail, “The increase in crude and cotton prices have affected the textile manufacturer’s bottomline and compelled it to raise the prices of the finished products.”
In a further revelation, she added, “We see better sales in the later half of the year, though inflation has badly hit the retail sector.”
The company, however, has planned to invest around Rs 50 crore for setting 450 mid-end home furnishing stores and 40 high-end stores branded ‘Welhome’ and ‘Spaces’ respectively.
Welspun also has plans to expand its global footprint — restricted to the US currently — by selling its products to the South Asian Association for Regional Cooperation (SAARC) and other Asian countries.